Posts Tagged ‘Automotive

12
Aug
10

Recovery still distant as GM turns a corner

NEWS
Recovery still distant as GM turns a corner
General Motors profits move past $1 billion

Thursday, August 12, 2010

••• General Motors said on Thursday its profits hit $1.3 billion in the second quarter, as the car company prepared to break free of U.S. government ownership by relisting on the stock exchange.

‘I am pleased with our progress on achieving our business objectives,’ said chief financial officer Chris Liddell, announcing the second consecutive quarter of growth.

The company erased a loss of $13 billion in the same period last year, as sales and revenues increased.

The firm saw stronger sales in North America in the quarter, even as sales in Europe floundered and market share around the world sank.

GM captured 15.4 percent of the U.S. market for cars versus 17.5 percent in the second quarter of last year, but elsewhere faired poorly.

GM’s executives have said that a public offering will come soon, a process that will help the U.S. government unwind its majority stake in the firm.

The U.S. Treasury Department still owns 61 percent of GM, which received $50 billion of U.S. government financing for its bankruptcy restructuring that led to mass layoffs, plant closures and billions of dollars in debt wiped out.

GM’s drive for an IPO will be boosted by news that the firm’s revenues swelled to $33 billion in the second quarter, a third more than the same period last year.

GM as well as its U.S. competitors Ford and Chrysler were hard hit by the recession which struck the United States in December 2007, caused by a home mortgage meltdown.

Of the so-called Detroit Three car makers, Ford was the only one to avoid bankruptcy, managing to stay afloat thanks to massive loans it had obtained prior to the credit crunch and because it moved more quickly to revitalise its product portfolio.
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31
Jul
10

Weekly Address: Good News on Autos, Obstruction on Small Business

NEWS
Weekly Address: Good News on Autos, Obstruction on Small Business
President Obama Hails Successes of the Restructuring of the Auto Industry, Calls on GOP Leaders to Stop Blocking Aid for Small Businesses

Saturday, July 31, 2010

In this week’s address, President Obama praised the successes of the auto industry restructuring. When his administration decided to invest in the American car companies, some said such a move was bound to fail. But since GM and Chrysler have emerged from bankruptcy, the auto industry has added 55,000 jobs – the strongest growth in 10 years – and for the first time since 2004, all three companies are operating at a profit. The President also called on Republican leaders in the Senate to stop blocking a vote on a bill helping small businesses. Even though this bill will help the recovery, and has been endorsed by groups like the Chamber of Commerce and the National Federation of Independent Business, the Republican Senate leadership continues to hold it hostage to politics by denying an up-or-down vote on the bill.

Hello everyone. I’m speaking to you from the GM auto plant here in Detroit, Michigan, where a hopeful story is unfolding in a place that’s been one of the hardest hit in America.

In the twelve months before I took office, American auto companies lost hundreds of thousands of jobs. Sales plunged 40 percent. Liquidation was a very real possibility. Years of papering over tough problems and failing to adapt to changing times – combined with a vicious economic crisis – brought an industry that’s been the symbol of our manufacturing might for a century to the brink of collapse.

We didn’t have many good options. On one hand, we could have continued the practice of handing out billions of taxpayer dollars to the auto industry with no real strings attached. On the other hand, we could have walked away and allowed two major auto companies to go out of business – which could have wiped out one million American jobs.

I refused to let that happen. So we came up with a third way. We said to the auto companies – if you’re willing to make the hard decisions necessary to adapt and compete in the 21st century, we’ll make a one-time investment in your future.

Of course, if some folks had their way, none of this would be happening at all. This plant might not exist. There were leaders of the “just say no” crowd in Washington who argued that standing by the auto industry would guarantee failure. One called it “the worst investment you could possibly make.” They said we should just walk away and let these jobs go.

Today, the men and women in this plant are proving these cynics wrong. Since GM and Chrysler emerged from bankruptcy, our auto industry has added 55,000 jobs – the strongest period of job growth in more than ten years. For the first time since 2004, all three American automakers are operating at a profit. Sales have begun to rebound. And plants like this that wouldn’t have existed if all of us didn’t act are now operating maximum capacity.

What’s more, thanks to our investments, a lot of these auto companies are reinventing themselves to meet the demands of a new age. At this plant, they’re hard at work building the high-quality, fuel-efficient cars of tomorrow – cars like the plug-in hybrid Chevy Volt that can run 40 miles before taking a sip of gasoline. Throughout Michigan, an advanced battery industry is taking root that will power clean electric cars – an industry that produced only 2 percent of the world’s advanced batteries last year, but will now be able to produce as much as 40 percent in a little over five years. That’s real progress.

There’s no doubt that we have a long way to go and a lot of work to do before folks here and across the country can feel whole again. But what’s important is that we’re finally beginning to see some of the tough decisions we made pay off. And if we had listened to the cynics and the naysayers – if we had simply done what the politics of the moment required – none of this progress would have happened.

Still, even as these icons of American industry are being reborn, we also need to stand shoulder-to-shoulder with America’s small businessmen and women, as well – particularly since they’re the ones who create most of the new jobs in this country.

As we work to rebuild our economy, I can’t imagine anything more common-sense than giving additional tax breaks and badly-needed lending assistance to America’s small business owners so they can grow and hire. That’s what we’re trying to do with the Small Business Jobs Act – a bill that has been praised as being good for small businesses by groups like the Chamber of Commerce and the National Federation of Independent Business. It’s a bill that includes provision after provision authored by both Democrats and Republicans. But yesterday, the Republican leaders in the Senate once again used parliamentary procedures to block it. Understand, a majority of Senators support the plan. It’s just that the Republican leaders in the Senate won’t even allow it to come up for a vote.

That isn’t right. And I’m calling on the Republican leaders in the Senate to stop holding America’s small businesses hostage to politics, and allow an up-or-down vote on this small business jobs bill.

At a time when America is just starting to move forward again, we can’t afford the do-nothing policies and partisan maneuvering that will only take us backward. I won’t stand here and pretend everything’s wonderful. I know that times are tough. But what I also know is that we’ve made it through tough times before. And we’ll make it through again. The men and women hard at work in this plant make me absolutely confident of that.

So to all the naysayers out there, I say this: Don’t ever bet against the American people. Because we don’t take the easy way out. That’s not how we deal with challenge. That’s not how we build this country into the greatest economic power the world has ever known. We did it by summoning the courage to persevere, and adapt, and push this country forward, inch by inch. That’s the spirit I see in this plant today, and as long as I have the privilege of being your President, I will keep fighting alongside you until we reach a better day.
Thanks.

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• Source(s): The White House
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30
Jul
10

President Obama in Detroit: The Fight for America’s Workers

NEWS
President Obama in Detroit: The Fight for America’s Workers
President Obama hails auto bailout as good news in Michigan

Friday, July 30, 2010

Today the President was in Detroit visiting workers at a Chrysler plant and a GM plant that have not only survived, but found success after critics looking to score political points claimed there was no hope for them. For those critics the President offered a lesson: “Don’t bet against the American worker.”

During the two years since the economy took its hard downward turn, millions of Americans have had to fight with everything they had to stay afloat, to keep food on the table, to keep their businesses in business – and nowhere has that been more true than in Detroit.

The President has also been fighting alongside America’s workers – from the Recovery Act that’s saved or created about 3 million jobs, to the fight today over small business lending – and of course for the workers in Detroit and across America who contribute to the decades-old craft of American cars. When political opponents said that helping the American auto industry survive was a lost cause, and tried to turn public frustration against the President, he stepped in and made the hard choices anyway. There couldn’t necessarily be a life raft for everybody, but he was not going to let a million American jobs fall by the wayside simply because it opened him up for cheap political attacks.
And as the report released yesterday made clear, that investment is paying off: “In the year before GM and Chrysler emerged from bankruptcy, the auto industry shed 334,000 jobs. In the year since, auto industry employment has increased by 55,000 jobs. This is the fastest year-over-year growth in auto employment since 1999.” Not only that, but with a boost from the Recovery Act’s investments in the clean energy economy, the industry has turned toward the future in ways many thought they never could. A quick look at the interactive map released yesterday gives a glimpse of how America can move back to the front of the pack in the coming generation of fuel efficient and electric vehicles.

In his visit to the Chrysler Jefferson North Assembly Plant, speaking to workers who have had to fight just to keep working, it was clear the President felt in a bit of a fighting mood himself:

The President: Investments like those mean jobs for American workers to do what they’ve always done: build great products and sell them around the world.

So the bottom line is this – we’ve got a long way to go, but we’re beginning to see some of these tough decisions pay off. We are moving forward.

I want you to remember, though, if some folks had their way, none of this would have been happening. I just want to point that out. Right? I mean this – this plant – this plant and your jobs might not exist. There were leaders of the “just say no” crowd in Washington – they were saying – oh, standing by the auto industry would guarantee failure. One of them called it “the worst investment you could possibly make.”

Audience: Boo!

The President: They said – they said we should just walk way and let those jobs go.

Audience: Boo!

The President: I wish they were standing here today. (Applause.) I wish they could see what I’m seeing in this plant and talk to the workers who are here taking pride in building a world-class vehicle. I don’t think they’d be willing to look you in the eye and say that you were a bad investment. They might just come around if they were standing here and admit that by standing by a great American industry and the good people who work for it, that we did the right thing. It’s hard for them to say that. You know, they like admitting when I do the right thing. (Laughter.) But they might have had to admit it. And I want all of you to know, I will bet on the American worker any day of the week! (Applause.)

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• Source(s): The White House
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08
Jul
10

Toyota Recalling 138,874 Lexus Vehicles

NEWS
Toyota Recalling 138,874 Lexus Vehicles

Thursday, July 8, 2010

••• Toyota Motor Corp on Tuesday filed a recall of 138,874 luxury Lexus vehicles sold in the United States to fix faulty engines in the latest quality problem to afflict the world’s No. 1 automaker. The move follows a recall of over 90,000 Lexus and other vehicles in Japan over the same problem, which was filed with the Japanese transport ministry on Monday.

The Japanese automaker said flaws in valve springs, a crucial engine component, could make the vehicle stall while in motion. Toyota confirmed in a statement it plans to file paperwork with the government on the recall next week.

The recall affects certain GS, IS and LS vehicles from the 2006-2008 model years powered by 4.6 and 5.0 liter V8 engines and 3.5 liter V6 engines. No accidents or injuries have been reported. Vehicles from the 2009 and 2010 model years are not affected.

Toyota had announced in Japan that it would recall 270,000 Lexus vehicles around the world to address the engine stalling problems. The global recall affects seven luxury Lexus sedan models as well as the popular Crown sedan, sold primarily in Japan. Of the 270,000 recalled cars, some 180,000 were sold overseas, including the United States, and 90,000 in Japan.

The company has received about 200 complaints in Japan but no accidents were reported there or abroad, said Toyota spokesman Hideaki Homma. Some drivers told Toyota that engines made a strange noise.

The automaker was already scrambling to repair its reputation after 8.5 million vehicles were recalled beginning in October because of problems with sticking accelerator pedals and other issues. Toyota was slapped with a record $16.4 million fine in the United States for acting too slowly to recall vehicles with defects.

Japan’s major daily Asahi said Friday the latest recall of 270,000 vehicles could cost Toyota around $227 million. Toyota could not confirm the report, which gave no sources.

Subject to the recall in the United States, filed with the Department of Transportation, are 2006-2008 Lexus models, including the top-of-the-line LS460 sedan, IS350, GS460, GS450h and the LS600hL models. Toyota plans to recall 270,000 vehicles worldwide due to the defective engine valve springs.

Toyota said owners will be notified of the recall by mail and dealers will repair the engine’s valve springs at no charge. The company said owners can continue to drive their vehicles. If they notice vibration, unusual engine sounds or rough idling, they should bring the car to a dealer for service.

Lexus general manager Mark Templin told dealers in an e-mail that “we understand the frustration and embarrassment these recalls cause and appreciate your reassuring Lexus owners that there is nothing more important to us than their safety, satisfaction with our products and confidence in you and the brand.”

Toyota dealers have repaired millions of vehicles following the massive global recalls, but the automaker still faces more than 200 lawsuits tied to accidents, the lower resale value of Toyota vehicles, and the drop in the company’s stock.

Toyota said last week it will recall 17,000 Lexus luxury hybrids after testing showed that fuel can spill during a rear-end crash.

U.S. regulators were working with scientists from NASA to investigate what caused some of Toyota’s vehicles to suddenly accelerate. That review is expected to be completed by late August.

Officials were also investigating whether Toyota waited nearly a year in 2005 to recall trucks and SUVs in the U.S. with defective steering rods, a case that could lead to additional fines.

Customers who have any questions or concerns should contact their local Lexus dealer or Lexus Customer Satisfaction at 1-800-25LEXUS or 1-800-255-3987 or at www.lexus.com/recall.
• Customers who have any further questions are asked to visit www.lexus.ca or contact Lexus Canada at 1-800-265-3987.
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• Source(s): Toyota Motor Corporation
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25
Jun
10

Toyota recalls Lexus HS250h hybrid for fuel spills

NEWS
Toyota recalls Lexus HS250h hybrid for fuel spills

Friday, June 25, 2010

••• Toyota said on Friday it will recall 17,000 Lexus luxury hybrids after testing showed that fuel can spill during a rear end crash.

The Japanese automaker said tests conducted for the National Traffic Highway Safety Administration found that fuel leaked during a rear impact crash at 50 miles per hour on a 2010 HS250h sedan. The test, conducted by a NHTSA contractor, showed that fuel spilled as the vehicle spun around after impact. (NHTSA CAMPAIGN ID Number: 10V285000)

Toyota’s own testing has not shown any spillage, but a spokesman said the company plans to issue a voluntary recall as it continues to try to replicate the government’s results. It is notifying dealers to stop selling the car.

Toyota, the world’s largest automaker, has attempted to rebound from a series of recalls tied to reports of unintended acceleration and other defects. The U.S. administration penalized Toyota with a record $16.4 million fine for acting too slowly on the recalls.

Dealers have repaired millions of vehicles, but the auto giant faces more than 200 lawsuits connected to accidents and the lower resale value of vehicles.

Earlier this week, Toyota Motor Corp president Akio Toyoda, the grandson of the automaker’s founder, apologized to shareholders for the trouble caused by the recalls. He said the company was doing its best to improve quality control.

Toyota said it has not identified a fix for the reported problems of fuel spillage.

Detailed information about this recall is available through Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987 or at www.lexus.com/recall.
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11
May
10

Toyota logs $1.60 billion 2009 profit despite recall woes

NEWS
Toyota logs $1.60 billion 2009 profit despite recall woes

Tuesday, May 11, 2010

••• Despite massive recalls that dented its safety image, Toyota Motor Corp. said Tuesday it logged a $1.60 billion group operating profit for the business year that ended in March, reversing the $4.99 billion loss recorded a year earlier.

It posted $2.27 billion in group net profit, compared with a loss of $4.73 billion in the 2008 business year, when the global financial crisis hit and car sales in the United States and Europe tanked. Group sales slipped 7.7 percent to $205.56 billion from $221.79 billion.

The steep rebound in profit – the first in two years – comes mostly as a result of cost-cutting efforts.

The safety woes mainly affected sales in the United States and Europe, but incentives in some regions helped shore up sales, limiting the fall in revenue.

“It was a year of being constantly on alert due to the series of recall matters, which caused concerns,” President Akio Toyoda said. “The severe conditions will likely continue, but I believe there is light far away amid the storm.”

Toyota now expects profits to grow in the current business year to next March. It forecasts a $3.03 billion group operating profit and $3.35 billion net profit on $205.56 billion in sales.

The company said it will focus on next-generation environmentally friendly cars by improving technology for hybrids and expanding its lineup. Also, it will gear up sales in fast-growing economies, particularly China and India.

Profit for the last business year mainly came from production cost cuts amounting to $5.63 billion, as well as $5.08 billion worth of reductions in fixed daily costs, including for labor, research and development, the company said.

Toyota said costs linked to its spate of worldwide recalls – $1.84 billion to $1.95 billion for the business year – were within expectations.

But concerns about potential massive recalls over accelerator defects continue.

The earnings results came a day after U.S. Transportation Secretary Ray LaHood hinted at a news conference at Toyota’s headquarters in Aichi Prefecture that more fines could be imposed if needed.

Last month, Toyota agreed to pay a record $16.4 million U.S. government fine for delaying a January recall over defective accelerator pedals.

Meanwhile, the U.S. Department of Transportation’s National Highway Traffic Safety Administration said in a statement issued Monday in Washington that it has opened an investigation into whether Toyota in 2005 notified the agency of a steering relay rod safety defect within five business days of learning of the defect’s existence, as required by law.

“We will fully cooperate with the investigation,” Toyoda said at the news conference.
• Source(s): Toyota Motor Corp.
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28
Apr
10

Toyota Recalls 50,000 Sequoia SUVs

NEWS
Toyota Recalls 50,000 Sequoia SUVs

Wednesday, April 28, 2010

••• Toyota Motor Corp will recall about 50,000 2003-year Sequoia sport utility vehicles in the United States and Canada to fix a problem in their vehicle stability control system, the company’s U.S. sales unit said Wednesday. Toyota Motor Sales U.S.A. Inc. said the recall will be conducted to adjust the VSC system, which is designed to control a loss of traction in turns as a result of front or rear tire slippage during cornering.

Without the adjustment, the VSC system could activate at low speed for a few seconds after acceleration from a stopped position, Toyota said. As a result, the vehicle may not accelerate as quickly as the driver expects, the company said, adding there have been no reported injuries or accidents as a result of this condition.

Detailed information and answers to questions are available to customers at www.toyota.com/recall and at the Toyota Customer Experience Center at 1-800-331-4331.
» See: Toyota Announces Voluntary Recall on 2003 Model-Year Sequoia to Upgrade Program Logic in Vehicle Stability Control System

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